THE report also found some families are refusing homes through housing associations because they can't afford to buy furniture.

WELFARE cuts and the bedroom tax are pushing poverty-stricken families into homelessness, says a report out yesterday.

And some people being offered homes through housing associations are refusing them because they have no means of furnishing the property.

In the report, more than two thirds of housing associations say they have had to help homeless applicants with sourcing essential items, such as carpets, a cooker, a fridge or a bed.

The report was carried out in October – before the Daily Record’s campaign drive saw the SNP Government and Labour hammer out a deal to provide cash to offset the bedroom tax.

Welfare sanctions on claimants and benefits cuts are also having a bad effect on tenants, with a quarter of housing associations saying the bedroom tax has had a negative impact on housing.

The report says: “This is because both downsizing tenants and homeless applicants are competing for smaller properties, particularly one-bedroom properties, which are in short supply regardless of the increase in demand.”

The survey, carried out by the Scottish Federation of Housing Associations, concludes that the UK Welfare Reform Act has undermined the devolution of Scottish housing policy.

It says: “It is clearly not just existing tenants who are being hit by welfare reforms – new and prospective tenants are also affected.

“In particular, the bedroom tax is having a direct impact on homeless households because of competition for smaller properties and the financial implications of moving into a larger home.”

The Daily Record’s campaign against the bedroom tax exposed huge injustice against the most vulnerable in society.

Under the Holyrood plan, local authorities are able to make discretionary payments to households which apply.

The survey also reveals the bedroom tax has made tenancies more difficult for vulnerable families.

It says: “Social landlords are doing their best to mitigate the worst impacts of welfare reform.

“However, the bedroom tax is making it increasingly difficult for housing associations to support vulnerable tenants to sustain their tenancies.

“Furthermore, reductions in benefits and increased sanctions upon claimants are having a direct impact on the ability of housing associations and cooperatives to prevent and alleviate homelessness.”

Fiona King, of Shelter Scotland, said: “We share the SFHA’s concerns on welfare reform and the impact it is having on vulnerable and low-paid people.

“This is part of a wider crisis. Our research showed that one in five people in Scotland were worried that they may not be able to pay their rent or mortgage.”